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In a statement, Stobart said: "Stobart Group and Flybe have a range of shared interests arising from Stobart Group's ownership of London Southend Airport and its aircraft leasing company and the growing franchise arrangements between the two groups' airlines.

"As previously disclosed in October 2017, we have been reviewing alternative structures for our airline and leasing business that can play an important part in the consolidation of the regional airline sector.

"A number of potential structures have been considered including taking a non-controlling interest in a vehicle to acquire 100% of Flybe likely to be in cash."

Flybe has been grappling with an IT overhaul and efforts to drive down costs, with half-year profits nearly halving at £8.4 million when it updated the market in November.

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However, revenues climbed 8.5% to £158.8 million during the third quarter as passenger numbers rose 8.1% to 2.3 million.

Shares in Stobart Group rose more than 2% following the announcement.

Flybe said it had not been approached by Stobart regarding a possible offer, but confirmed that an offer period had now started as a consequence of the announcement. It strongly advised shareholders not to take any action.

In a statement, it said: "Flybe plc ("Flybe" or the "Company") (LSE: FLYB) notes the recent media speculation and subsequent announcement made by Stobart Group Limited ("Stobart Group"). Flybe confirms that it has not received any approach from Stobart Group regarding a possible offer by Stobart Group for Flybe.

"Flybe shareholders are strongly advised to take no action at this stage. There can be no certainty that any firm offer will be made nor as to the terms on which any firm offer might be made. Further announcements will be made in due course as appropriate.

"As a consequence of the announcement, an offer period has now commenced in respect of Flybe in accordance with the rules of the Code."

Stobart Group must, by not later than 5pm on 22 March 2018, either announce a firm intention to make an offer for Flybe or announce that it does not intend to make an offer.